My dear friend Apache,
I do not feel guilty taking home my paycheck, since I take what I do very serious, although I am far below your esteemed standards, I have had nothing but succes teaching students. Spent 3000 hours teaching all levels and still teach on occasion, since I enjoy it.
Not all people learn equally fast, we all know that, some allowances has to be made. The question should be, will this person make a good, safe pilot in the end? Does the person enjoy it? If the answer to both questions is yes, then we should procede.
Some people do require more room in the circuit, most often in the beginning or when moving up to a faster, more complex aircraft. I would certainly think that prudent, however, if there are more people in the cct, then perhaps one could relocate to a less used field or assist by making the calls. This is of course a short term solution, however, one that should not be required for long, since the student will become adept and learn a normal cct size.
As a Flight Instructor, our job is to teach people how to fly safely and "properly. We are the eyes, ears and brains and as such must use judgement.
Someone spoke of Military training. Military training is very hard and the washout rate very high, is that what we want? If you do not solo after 10 hrs, you are out? I have flown with military aviators, some were great, some were not. I have flown with people that got "washed out", same thing there.
To sum this up, I think you have to make reasonable allowances in teaching, while still requiring skill and aspiring for perfection. We are here to teach people to become safe pilots, not to create an elitist fraternity. IMHO:-)